Edmonton's Multifamily Boom and Insights on Denver's Growth

In this episode, Sandy MacKay explores the recent surge in multifamily investments in Edmonton, highlighting the area's population growth and its effect on rental market dynamics. Sandy examines the interplay between retail and multifamily rental rate trends, providing a comprehensive overview of the current market landscape. The episode features a sponsorship segment from BH Properties, focusing on affordable housing initiatives. Sandy discusses multifamily investment strategies and shares leadership insights, further spotlighting Denver's 3850 Blake project. The growth of the River North Art District's multifamily sector is also addressed, with closing remarks summarizing the key insights discussed throughout the episode.

Episode Transcript

(00:00):
Have you ever wondered how Edmonton'smultifamily and retail real estate sectors

(00:04):
managed to surge so significantly in 2024?
Welcome to the Multifamily Real Estate InsightsPodcast.
I'm your host, Sandy MacKay.
Let's get right to it.
In 2024, Edmonton experienced a remarkablesurge in multifamily home and retail
investments, driven largely by populationgrowth and a booming rental market.

(00:27):
According to a report by Avison Young, thegreater Edmonton area saw a total of $4.8
billion invested in commercial real estate,marking a 25 percent increase from the previous
year.
Notably, the multifamily asset class attractedthe most attention, bringing in $1.89 billion,
which was a staggering 70 percent increase over2023.

(00:50):
Jandip Deol, a principal of multifamily withAvison Young Edmonton, highlighted that the
city's population growth has been a key driverof this investment boom.
The influx of new residents has led to anincreased demand for rental properties,
propelling rental rates upward and attractingsignificant investment in the multifamily
sector.

(01:11):
Deol noted that this trend is expected tocontinue as more people move into the province
and initially opt to rent rather than purchasehomes.
Interestingly, the rise in rental rates isn'tlimited to residential units.
Retail rental rates have also climbed, aspointed out by Reed Newnham, principal of
capital markets with Avison Young Edmonton.

(01:32):
With population growth outpacing thedevelopment of new retail spaces, existing
spaces have become more valuable, leading tohigher rental rates.
This has encouraged businesses to adapt bybuilding new, more efficient spaces to meet
changing consumer needs.
The multifamily investments in Edmonton span arange of developments, from six-unit properties

(01:54):
to larger towers in the downtown area, with asignificant number of new builds occurring in
suburban areas.
The demand for rental properties has been sostrong that the first quarter of 2025 alone saw
over $670 million invested in the multifamilysector.
Despite challenges, this surge in Edmonton'sreal estate market is a testament to the city's

(02:17):
growth potential.
As Deol mentioned, "There's still business tobe done.
There's still embedded growth in certain nodesin our market." It's an exciting time for
investors looking to capitalize on Edmonton'sburgeoning multifamily and retail sectors.
In exciting news from BH Properties, thecompany has introduced a new multifamily
housing platform called Haven Housing.

(02:39):
This initiative is set to focus on theacquisition, enhancement, and operation of both
market rate and affordable housing communitiesacross the Western United States.
With a keen eye on high-barrier, high-demandmetropolitan areas, Haven Housing aims to
capitalize on value-add potential incommunities with over one hundred units.

(03:00):
The platform is particularly interested inaffordable housing investments, specifically
targeting Low-Income Housing TaxCredit-restricted communities that have
surpassed their fifteen-year complianceperiods.
By doing so, Haven Housing plans to preserveaffordability while simultaneously improving
performance through strategic renovations andoperational upgrades.

(03:21):
This is a thoughtful approach to maintainingand enhancing the quality of affordable
housing, which is often a challenge in today'smarket.
Haven Housing is already off to a strong start,as it has been seeded with two thousand five
hundred units.
These initial investments will focus on class Aand B properties located in states such as

(03:42):
Arizona, Colorado, Nevada, Oregon, Texas, Utah,and Washington.
This strategic geographical focus allows theplatform to leverage opportunities in areas
with strong demand and limited supply, which isa smart move in the current economic climate.
Connor Mortland, an industry veteran, has beenappointed as the managing director and head of

(04:04):
affordable housing acquisitions for this newplatform.
Mortland will lead the affordable investmentstrategy, bringing a wealth of experience and
expertise to the role.
His leadership is expected to drive theplatform's success in achieving its ambitious
objectives.
In an exciting development in Denver’s RiverNorth Art District, construction has begun on a

(04:25):
new 310-unit multifamily residential buildingknown as 3850 Blake.
This project is set to redefine urban living inone of Denver’s most vibrant neighborhoods.
With a strategic location at the corner ofBlake Street and 38th Street, the development
promises to be a landmark in the area.

(04:46):
The 16-story building is expected to becompleted in the third quarter of 2027 and will
offer a mix of studio, one-bedroom, andtwo-bedroom apartments.
These units will average 563 square feet,providing a range of living options to meet
diverse needs.
JLL Capital Markets, representing the realestate firm FORMATIV, secured a substantial

(05:09):
$65.5 million construction financing to bringthis project to life.
Rob Bova, Director at JLL Capital Markets,emphasized the potential of 3850 Blake, noting
its efficient unit mix, extensive amenities,and transit-oriented location.

(05:30):
These factors make it well-positioned to meetthe growing demand for luxury rental housing in
the River North Art District.
The development will feature nearly 40% ofresidences priced to be affordable for
individuals earning 70% of the area medianincome, and over 70% accessible to those
earning below 100% of the AMI, making it asignificant step towards attainable urban

(05:54):
living.
The multifamily property will also boast 12,000square feet of amenity space.
Residents can look forward to enjoying anelevated pool deck with unobstructed mountain
views, a clubhouse, coworking zones, anindoor/outdoor fitness center, and a
thoughtfully designed lobby that engages withthe surrounding neighborhood.

(06:15):
These amenities are designed to enhance theliving experience and foster a sense of
community.
The land for this ambitious project waspurchased in April 2022 for $9.6 million by
3850 Blake Owner LLC.
The River North Art District has seenremarkable growth, attracting 26,000 new

(06:37):
residents between 2019 and 2020.
The neighborhood is a hub of activity, withover 150 restaurants, bars, galleries, and
entertainment venues within a 10-block radius,making it an ideal location for urban living.
FORMATIV, the real estate investment anddevelopment firm behind this project, has a

(06:58):
diverse portfolio that includes multifamilyhousing, office spaces, hospitality,
condominiums, and large-scale master-plannedcommunities.
Their commitment to innovative andcommunity-focused development is evident in
their projects like The Hunter in ColoradoSprings and Denargo Market in the River North
Art District.

(07:20):
Thank you for listening to the Multifamily RealEstate Insights Podcast.
I'm your host, Sandy MacKay.
See you on the next one.